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Journal of Finance & Economics Research - Volume 7, Issue 1 2022
By Lubna Khan, Imtiaz Arif
10.20547/jfer2207104
Keywords: Islamic financial literacy (IFL); theory of planned behaviour (TPB); attitude & intention; financial consideration; social and religious values.
This paper investigates the elements that effects the individual's intention to use the Islamic banking services in Pakistan and, also assess the moderating effects of financial considerations (taken as perceived potential risk and perceived financial risk). The conceptual framework is developed using Theory of Planned Behaviour (TPB) model that links Islamic financial literacy (IFL), reputation, social and religious values with attitude and intention to use Islamic banking. The data has been collected from individuals who intend to use Islamic banking in the future. Findings reveal that IFL has a significant and positive impact on the attitude and further intention towards the Islamic banking services. Alongside, reputation, religious and social values also influence the attitude and intention of a person to use Islamic financing. Moreover, financial consideration also intensifies the nexus between attitude and intention to use Islamic banking. The research provides substantive implications regarding Islamic financial literacy that will help policymakers of Pakistan to formulate policies that enhance Islamic financing among individuals. This present study provides the evidence regarding the Islamic financial literacy (IFL) and its effect on intention of using Islamic banking. Additionally, it contributes the contemporary literature by adding evidences regarding financial consideration.
Submission Date: 11 Oct, 2021 Reviews Completed: 27 Dec, 2021Acceptance Date: 8 Jan, 2022 Publication Date: 10 Jan, 2022